Key Points
- Phillips 66 EVP Richard Harbison sold 52,100 shares for approximately $11.7 million at an average price of $223.76, reducing his direct ownership by 57.13%.
- The company reported strong quarterly results, with EPS of $9.41 surpassing estimates of $7.50 and revenue of $52.04 billion exceeding expectations. Phillips 66 also authorized a $10 billion share-repurchase program and maintains a $1.27 quarterly dividend.
- Shares opened at $232.55 near their 52-week high, while analysts maintain a consensus “Moderate Buy” rating; however, the stock’s cyclical refining exposure and recent insider selling may weigh on sentiment.
Phillips 66 (NYSE:PSX - Get Free Report) EVP Richard Harbison sold 52,100 shares of the firm's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the completion of the transaction, the executive vice president directly owned 39,094 shares in the company, valued at $8,747,673.44. This trade represents a 57.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link.
Phillips 66 Trading Up 3.1%
NYSE:PSX opened at $232.55 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.32 and a quick ratio of 1.00. The firm has a 50-day moving average of $191.72 and a 200-day moving average of $175.55. The company has a market cap of $92.79 billion, a PE ratio of 13.25, a PEG ratio of 0.16 and a beta of 0.68. Phillips 66 has a one year low of $119.80 and a one year high of $232.89.
Phillips 66 (NYSE:PSX - Get Free Report) last posted its earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, topping analysts' consensus estimates of $7.50 by $1.91. The company had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. During the same quarter in the prior year, the business posted $2.38 EPS. As a group, equities research analysts expect that Phillips 66 will post 24.44 EPS for the current fiscal year.
Phillips 66 declared that its Board of Directors has initiated a stock buyback plan on Friday, July 31st that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.
Phillips 66 Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a dividend of $1.27 per share. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $5.08 annualized dividend and a dividend yield of 2.2%. Phillips 66's payout ratio is presently 28.95%.
More Phillips 66 News
Here are the key news stories impacting Phillips 66 this week:
- Positive Sentiment: Refining margins and cash flow remain strong. Phillips 66 reported second-quarter refining margins of $24.08 per barrel, while debt declined by $6.6 billion. Supply disruptions linked to the Iran conflict have also supported fuel margins across major U.S. refiners, potentially sustaining earnings and shareholder payouts. U.S. refiners ramp up buybacks as Iran war boosts fuel margins
- Positive Sentiment: Shareholder returns are a major catalyst. Phillips 66 authorized a $10 billion share-repurchase program, equal to approximately 11.8% of shares outstanding, and maintains a quarterly dividend of $1.27 per share. Stronger margins and reduced leverage improve the company’s capacity to return capital. Phillips 66 stock analysis
- Positive Sentiment: Analyst support and infrastructure expansion add confidence. J.P. Morgan maintained its Buy rating, while Phillips 66 and partners approved the approximately $5 billion Western Gateway refined-products pipeline. The 1,300-mile project could create longer-term transportation and logistics opportunities. J.P. Morgan maintains Buy rating
- Neutral Sentiment: Valuation and regulatory risks warrant caution. Strong refining margins, diversified cash flows and debt reduction support PSX’s premium valuation, but refining is cyclical and potential regulatory changes could pressure future profitability. Should You Buy Phillips 66 Stock at Its Current Premium Valuation?
- Negative Sentiment: Multiple executives have sold shares. EVP Richard Harbison sold 52,100 shares for about $11.7 million, while EVP Brian Mandell sold 33,300 shares for roughly $7.2 million. Additional option-related sales totaled about $1.7 million. The transactions may represent profit-taking after a strong run, but they could weigh on near-term sentiment. Phillips 66 insider selling activity
Hedge Funds Weigh In On Phillips 66
Hedge funds and other institutional investors have recently made changes to their positions in the stock. L2 Asset Management LLC purchased a new stake in Phillips 66 during the second quarter worth about $387,000. Vega Investment Solutions purchased a new position in Phillips 66 in the second quarter valued at about $333,000. Partners Capital Investment Group LLP bought a new position in shares of Phillips 66 during the 2nd quarter valued at approximately $2,597,000. Visionary Wealth Advisors bought a new position in shares of Phillips 66 during the 2nd quarter valued at approximately $11,794,000. Finally, Dearborn Partners LLC purchased a new stake in shares of Phillips 66 during the 2nd quarter worth approximately $696,000. 76.93% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
Several equities analysts have weighed in on the company. Jefferies Financial Group raised their price objective on Phillips 66 from $191.00 to $207.00 and gave the company a "hold" rating in a research note on Thursday, July 9th. UBS Group upped their target price on shares of Phillips 66 from $212.00 to $235.00 and gave the stock a "buy" rating in a research note on Monday, July 27th. Guggenheim upgraded shares of Phillips 66 to an "outperform" rating in a report on Wednesday, May 27th. Morgan Stanley raised their price target on shares of Phillips 66 from $180.00 to $196.00 and gave the company an "overweight" rating in a research report on Friday, June 12th. Finally, Piper Sandler boosted their price target on shares of Phillips 66 from $208.00 to $209.00 and gave the stock a "neutral" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $206.56.
Read Our Latest Stock Analysis on Phillips 66
Phillips 66 Company Profile
(
Get Free Report)
Phillips 66 (NYSE: PSX) is an independent energy manufacturing and logistics company engaged primarily in refining, midstream transportation, marketing and chemicals. The company processes crude oil into transportation fuels, lubricants and other petroleum products, operates pipeline and storage infrastructure, and participates in petrochemical production through strategic investments. Phillips 66 serves commercial, industrial and retail customers and positions its operations across the value chain of the downstream energy sector.
The company's principal activities include refining crude oil into gasoline, diesel, jet fuel and feedstocks for petrochemical production; operating midstream assets such as pipelines, terminals and fractionators that move and store crude oil and natural gas liquids; and marketing and distributing fuels and lubricants through wholesale and retail channels.
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